Tuesday, June 18, 2024

SAFER Banking Act, FinCEN provide nice news for banks

The U.S. Senate Committee on Banking, Housing and Urban Affairs passed the SAFER Banking Act late last month, which protects financial institutions that provide banking and financial services to cannabis-related businesses.

The vote marked the first time the Senate, in any form, has voted in favor of either the SAFER Banking Act, or its predecessor, the SAFE Banking Act. While there are still several more hurdles to move past – passage will be needed in both the full Senate and House – it marks momentum in the banking industry’s efforts.

Meanwhile, the Financial Crimes Enforcement Network also announced late last month, its intention to extend the deadline for certain filers of Beneficial Ownership Information Reports.
FinCEN is proposing to amend its final BOI Reporting Rule to provide 90 days for reporting companies created or registered in 2024 to file their initial reports, instead of 30 days. Reporting companies created or registered before Jan. 1, 2024, would have until Jan. 1, 2025, to file their initial BOI reports with FinCEN, and entities created or registered on or after Jan. 1, 2025, would have 30 days to file their initial BOI reports.